19 March 2025 Concept Car
Just passed your driving test and excited to get out on the roads in your new car?
Driving brings a sense of freedom, but it’s understandable if you get knocked back after seeing the cost of insurance rates for new drivers.
From experience to no claims, there are a few reasons why the prices are much higher than your average driver.
New drivers typically pay higher premiums due to increased risk and lack of driving history. The total cost is determined by the following statistics:
With so little experience on the road, new drivers are considered a higher risk and therefore more likely to make mistakes or cause accidents, leading to more claims.
Statistically, new and young drivers are involved in more accidents – especially in the first year. This leads to higher premiums to cover potential payouts.
If you have a few years of car insurance under your belt, you’ll benefit from no claims discounts. But, as a new driver, you’ll start with no experience or no claims.
Without a track record, there’s no proof of how safe your driving is. In other words, insurance companies assume the worst until told otherwise by your no claims.
New drivers typically choose a cheaper or used car, which can sometimes come with a lack of safety features, making accidents, and claims, more likely.
On the other hand, if you were to choose a sporty or more high-performance model as your first car, these can come with higher premiums too as the cost of repairs and the risk of theft are much higher.
Younger drivers (aged 17-24) face the highest premiums due to statistically higher accident rates.
Those who have passed their driving test in their late 20s or above are likely to get much cheaper rates because of their age.
If you live in an area with high accident rates or car theft, insurance costs will be considerably higher than in areas with limited car-related crime.
Cities also tend to have higher premiums than more rural areas.
According to insurance companies, the more you drive, the more at risk you are of being involved in an accident.
Occasional drivers may benefit from low-mileage policies, but this can vary depending on the provider.
Different companies offer different policies. While third-party is often considered cheaper than comprehensive cover, it’s not necessarily the case.
Black Box agreements can also bring down the cost by monitoring driving habits.
Don’t be scared off if you are a new driver looking to insure your car. There are ways to reduce the cost and make it fit your budget.
Here are some tips and tricks you can use to lower the cost:
New driver insurance is costly, but understanding how to make it fit your budget and what you can do to make it cheaper will make a world of difference.
Here at Concept Car Credit, we offer car finance for new drivers to bring the cost down even further. You can choose from a wide range of cars for every preference and price range.
And, you’ll get support from our experts, who can recommend the best new driver insurance companies for a deal that suits you.
Get in touch with us to learn more and get started.
19 March 2025 Concept Car
